Small and Medium-sized Enterprises: Local Strength, Global ...

Policy BriefOrganisation for Economic Co-operation and Development OECD 2000 June 2000 SummarySmall and Medium-sized enterprises (SMEs) account for over 95% of firmsand 60%-70% of employment and generate a large share of new jobs in OECD economies. They have specific strengths and weaknesses that may require spe-cial policy responses. As new technologies and globalisation reduce theimportance of economies of scale in many activities, the potential contribu-tion of smaller firms is enhanced. However, many of the traditional problemsfacing SMEs lack of financing, difficulties in exploiting technology, con-strained managerial capabilities, low productivity, regulatory burdens become more acute in a globalised, technology-driven firms need to upgrade their management skills, their capacity to gatherinformation and their technology base.

integrated into formal and informal networks of firms. High-growth SMEs play a pioneering role in devel-oping new products and markets in sectors such as ICT and biotechnol-ogy and are at the cutting edge of the “new economy”. What type of SME financing is needed? Funding gaps for smaller firms are a major impediment to growth. Wide

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  Economy, Informal

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